Bitcoin experts make BTC price predictions before halving arrives
- Expectations are growing due to Bitcoin’s halving along with the division of experts about its future consequences on BTC’s price.
- Some experts predict a supply shock from BTC that will drive up prices.
Perhaps the most important event of the year for the crypto space, Bitcoin’s halving continues to gain attention as the scheduled date for its execution approaches. The event will reduce the mining reward for a Bitcoin block by half. Therefore, the current mining reward of 12.5 BTC will be reduced to 6.25 BTC, cutting off the miners’ income from the network during this date.
In the market, a bullish sentiment seems to prevail, driven by two factors. The first is statements by investor and billionaire Paul Tudor Jones comparing Bitcoin to gold. The second reason is the rise of Bitcoin above the $10K mark after it had one of its worst falls during March. At the time of publication, BTC is trading at $9,578 with a 2.71% loss in the last 24 hours. On the monthly and weekly charts, BTC shows gains of 31.15% and 9.12% respectively.
Experts and personalities of the crypto space, have not reached a consensus on whether the event will be bullish or bearish for Bitcoin. However, a significant number of experts believe that the event will be positive. Among the bullish experts, Anthony “Pomp” Pompliano has analyzed and commented the event in his podcast and in messages to his subscribers.
Pomp, like Tudor Jones and Mike Novogratz, believes that the U.S. Federal Reserve’s “infinite money” policy will be a catalyst for Bitcoin’s rise. As the traditional financial institution prints money in an attempt to mitigate the crisis caused by the Covid-19 pandemic, Bitcoin is moving toward a reduction in its supply. According to Pomp, the halving will cause a supply shock:
This (halving) will see a programmatic decrease in the incoming daily supply of Bitcoin from 1,800 per day to only 900 Bitcoin per day. That supply shock has historically led to a material price increase over the following 18–24 months.
Pomp added that the halving, in combination with the Fed’s policy, will be “rocket fuel” for Bitcoin. Accordingly, Three Arrows Capital CEO Su Zhu said that halving will bring a supply shock to Bitcoin that will boost BTC’s price in the coming months.
Pantera Capital founder and CEO Dan Morehead is another analyst who is bullish on the halving. Morehead said that the halving is an opportunity with the ability to push Bitcoin to a new all-time high. The CEO of Pantera Capital made a prediction about BTC’s price and said that if the history of previous halvings is repeated, BTC could reach a price of $500,000 by August 2021:
IF history were to repeat itself, bitcoin would peak in August 2021 – at $533,431. Obviously that’s a big IF. That price sounds ludicrous… Just sayin’ that there’s more than a 50-50 chance bitcoin goes up – and goes up big.
Coinshares’ Melem Demiros is bullish due to this year’s halving conditions. According to Demiros, the halving is different from previous years. Demiros highlighted the maturity and growth that Bitcoin has had since its last halving in 2016.
On the other hand, Peter Schiff published a bearish message on his Twitter account. According to the investor, the halving will be a kind of collapse for the cryptocurrency and the Bitcoin market. Schiff said that Bitcoin “won’t last long” and believes that investors and traders will be disappointed with the halving’s outcome.
Finally, Willy Woo proposed a different scenario for Bitcoin trading after the 2020 halving. According to the analyst, the selling pressure on BTC will shift from the miners to the exchanges. This shift in BTC trading, Woo said, will slow the increase in Bitcoin market capitalization.
If we think Bitcoin needs “number go up” to exceed $1T and then $10T market cap to make a dent in the world (I’m one of those) then futures trading slows this vision down. Slows number go up, increases volatility.
— Willy Woo (@woonomic) May 9, 2020
China 's counter concept to Bitcoin and Libra | Investment News
by Steffen Wurzel, ARD-Studio Shanghai
As of May 7th, 2020, 4:24 pm
China's state central bank has been working on its own digital currency for years. The first tests have recently started. One thing is clear: China's digital currency does not have much in common with the decentralized and anonymously designed Bitcoin.
Cash plays almost no role in the everyday life of most people in China. Payment is primarily made with a smartphone, and has been for years: in the supermarket, in the pub, when shopping online, at a vegetable stall or for a coffee to go.
Two payment services have divided the market in China among themselves: The market leader is Alipay, which belongs to the online group Alibaba, closely followed by WeChat – the app belongs to the Tencent group.
The Chinese central bank has also been working on a digital payment system for years. The first tests are now underway. The new system does not yet have a real name: Experts like Leonhard Weese speak of DCEP – that stands for Digital Currency Electronic Payment. Born in South Tyrol, Weese has lived in Hong Kong for years and co-founded the Bitcoin Association there:
China's central bank does not just want to create a digital payment system to steal market shares from Alipay and WeChat. The bank, which is subordinate to the communist leadership in Beijing, is also developing a real digital currency that could also be used in the future for international banking and payments.
In the past months and years, there has been repeated talk in the media about a Chinese version of Bitcoin, or a Chinese response to Facebook's planned new online payment system, Libra. Experts consider such comparisons to be nonsense, especially those who worked on the project. Like this Beijing. He works for a private online finance company that advised the Chinese central bank on the development of the new digital currency. He wants to remain anonymous:
The key thing with Bitcoin is that the system works decentrally and largely anonymously. Both are part of the basic concept of Bitcoin. The Libra project initiated by Facebook also has a decentralized claim. The claim of the Chinese central bank, on the other hand, is the opposite, stresses the Hong Kong expert for digital currencies Leonhard Weese:
"It is a very seductive concept for a government that loves to monitor everything," said the anonymous central bank advisor from Beijing. "It is also an important requirement to be able to track how and where the digital money is spent. The government cannot monitor cash transactions. This is bad in the fight against black money and tax evasion. With the new digital currency, all transactions can be monitored."
State-owned banks have recently started testing the new digital currency in several Chinese cities. In Chinese online media there are screenshots of the corresponding smartphone apps that you need for this. However, it is unclear how many people test the new system exactly and what can be paid for where. Just so much: In Suzhou, the city of ten million people, government employees are to be paid their travel expenses in this new digital currency.
The Beijing expert for online finance, who advised China's central bank on the development of the currency, considers the whole project to be an air number – at least compared to Bitcoin or Libra.
Expert Leonhard Weese sees the great potential of the Chinese digital currency abroad:
Steffen Wurzel, ARD-Studio Shanghai
Bitcoin ‘halving’ to shore up market value with steady demand: Experts
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